Dynasty TrustRevocable Living Trust

How Much Does It Cost to Create a Living Trust in Arizona?

Create a living trust to protect your loved ones - how much does it cost?

Create a Living Trust in Arizona - How much does it cost?

What do you know about the costs associated with creating a living trust in Arizona? Read our blog to understand it better.

If you haven’t made any plans for your estate, you’re not alone. Recent surveys reveal that up to 65 percent of Americans do not have a current estate plan. “

A living trust is a critical part of a successful estate plan. As an essential estate planning tool, it helps in organizing and managing your assets effectively. But how much should you plan on spending on one in Arizona?

By the time you finish reading this article, you will have a solid understanding of how much a living trust in Arizona costs and why you should consider having one drawn up.

Cost of a Living Trust in Arizona

Creating a living trust in Arizona varies in price. The living trust cost, though, depends on how a person sets up the trust. Setting up trusts in Arizona is a great estate planning strategy as Arizona has some of the best living trusts laws in the country.

Begin with a qualified attorney. Each attorney has a different fee structure that will determine your final cost. Make sure you hire an attorney who has expertise in trusts.

Attorneys each have a different specialty, much like doctors. Some will specialize in criminal law, for example. You need an attorney specializing in estate planning law with experience writing trusts. The trust document is not just a legal document, it is a whole estate plan strategy specific for your needs after your death, managing a person's assets during their lifetime.

In case you become incapacitated a trusts in Arizona should also have a successor trustee that can make decisions for you (assuming you are your own trust during life).

Discussing Fee Rates

When you find your attorney, discuss the fee rates. The State Bar of Arizona website will have a list of qualified estate planning lawyers in Arizona.

An attorney's fees determine how much you will pay when you have a lawyer draw up your trust. So when you hire a lawyer, discuss their fee rates first, so you know what to expect.

Look for an attorney who specializes in drawing up trusts.

Flat Fee Living Trust Costs

If you hire an attorney you will usually pay a flat fee. Some attorneys will do it hourly but it is not common. The average cost of a trust in the Phoenix East Valley is:

Living Trust and Will only - no POA's -> $2,000 to $3,000
Living Trust and POA's (without Deed) -> $2,500 to $4,000
Living Trust and POA's (with Deed) -> $2,500 to $4,500
Living Trust with Dynasty Trust Structure -> starts at $4,500 (usually recommended for Blended families and large estates)

Hourly rate for Estate Planning Attorney

The hourly rate for an estate planning attorney in the Phoenix East Valley is usually between $300 but it can get up to $600 for attorneys that do litigation (for contest estates). Most attorneys will not do a Living Trust on an hourly basis as it will end up being more expensive for the client.

What Is a Living Trust?

A living trust is a trust that takes place while a settlor is still alive. It is also know as a revocable living trust. It is a tool for estate planning that allows one individual to hold property for the benefit of a third party or for its own benefit. To understand the living trust, you must first understand the parties involved:

  • Trustee: The person holding the property
  • Settlor: The person whose property is being held
  • Beneficiary: The person for whom the property is being held. There are usually multiple beneficiaries to a living trust.

A living trust will ultimately eliminate a messy probate process after the settlor dies. The settlor will legally set up the trust, which allows the trustee to manage their assets which eventually go to the beneficiary, which can be your children or even your grandchildren if you do a generation skipping trust.

Why Get a Living Trust in Arizona?

When you opt to create a living trust, you remove the burden of the probate process for your heirs. Probate refers to the legal process your assets go through after you die. Such a process ensures the state distributes your assets according to your wishes.

If you have a living trust that has been properly funded, your estate will not go into probate.

With that said, the Arizona Uniform Probate Code has made the probate process much easier than it used to be. The current probate rules do not require formal court approval or even personal appearances in court in some cases. The probate laws work exceptionally well for those who have an estate of less than $75,000.

With that said, if you have a more significant estate, you should spend the money to have an attorney design a living trust for your needs. If you're planning on leaving your property to a minor, you should also have a living trust created. The trustee can care for the property until the minor child comes of age.

Furthermore, you can avoid conservatorship if an illness or accident incapacitates you. In this case, you'll already have a trustee designated to care for your affairs.

A Living Trust vs. a Will

You will still need to have a will drawn up if you have a living trust. The living trust does not replace this other critical estate document. The will makes some crucial distinctions such as the following things:

  • Names the executor
  • Provides directions for paying debts and taxes
  • Selects a manager for your children's property
  • Establishes who will take guardianship of your children

Ultimately a living trust will do different things. Here are the specific things a living trust does that a will does not:

  • May not allow revisions to be made
  • Avoids probate court
  • Avoids probate and keeps the process private

Both a will and a living trust name a property beneficiary. But a will also does things a living trust does not:

It's also worth noting a living trust will cost more to set up than a will. The trust administration process is much simpler and easier than probate, on top of being less expensive.

A will costs between $1,000 and $1,500 if done by an attorney in AZ. Regardless of what you choose to do, you need an estate plan.

Impact on Taxes

In Arizona (unlike in some other states), a living trust won't significantly impact your taxes. Your family will not have to pay an inheritance or estate tax in Arizona. If you have an estate of more than $12.06 or $24.12 million for a couple (as of 2022), then you have to pay a federal estate tax.

You will have to pay the federal estate tax regardless of whether you have a living trust.

Look Into a Living Trust Today

A living trust is a great way to protect your assets and your loved ones. Our Trust and Wills attorneys in Chandler, AZ will be pleased to help. We can save you money and time by helping you avoid the probate process all together. We also can set up dynasty trusts for a blended family.

Are you interested in having a living trust created by Citadel Law Firm? We can help. Contact us today, and let our experts help you plan for your loved ones. You can call (480) 565-8020 or you can click in the button below to schedule your free estate planning consultation.

Do you want to know more about the cost to get your estate planning done? Read our blog, click here.

When delving into estate planning, it's essential to consider various aspects, including the cost and convenience of creating legal documents. A popular option is the revocable living trust, known for its flexibility and the ability to avoid probate. Understanding the living revocable trust cost is crucial, and with the advent of online platforms, creating a living trust online has become more accessible. Many individuals opt for package living trust services, which often include not only the trust document but also other estate planning documents like a living will and financial power of attorney. The convenience and affordability of the best online trust platforms make them a go-to choice for those seeking comprehensive and efficient solutions in managing their estate planning needs. They are also a great source of litigation cases for attorneys as most of the times the trusts are not set up correctly.

Frequently Asked Questions About the Purpose of Trusts in Arizona

What is the downside of a living trust in Arizona?

While living trusts offer many benefits, they have some potential drawbacks:

- Cost: Setting up a living trust typically involves higher upfront legal fees compared to a simple will.

- Complexity: Managing a trust can be more complex than a will, requiring ongoing administration and potentially incurring additional costs.

- Limited protection from creditors: Revocable living trusts generally don't protect assets from creditors during the grantor's lifetime.

- No tax advantages for revocable trusts: Unlike irrevocable trusts, revocable living trusts don't provide tax benefits during the grantor's lifetime.

Is a Living Trust Better than a Will in Arizona?

The choice between a living trust and a will depends on individual circumstances. A living trust may be better if:

- You want to avoid probate, which can be time-consuming and costly.

- Privacy is a concern, as trusts aren't part of the public record unlike wills.

- You own property in multiple states and want to avoid ancillary probate.

- You want more control over asset distribution after death.

However, a will might be sufficient if your estate is simple and you're not concerned about probate. Consulting an estate planning attorney can help determine the best option for your situation.

What are the reasons to not have a revocable living trust in AZ?

Reasons to reconsider a revocable living trust include:

- You have a small, uncomplicated estate that wouldn't benefit significantly from avoiding probate.

- The cost of setting up and maintaining the trust outweighs the potential benefits.

- You prefer the court supervision that comes with probate.

- Your primary goal is reducing estate taxes (revocable trusts don't provide tax advantages during your lifetime).

At what net worth should you consider a trust in Arizona?

There's no specific net worth threshold for considering a trust, as it depends on individual circumstances and asset allocation. However, trusts become increasingly beneficial as your estate grows more complex or valuable. Factors to consider include:

- The current federal estate tax exemption (2024 limit: $13.61 million per individual)

- The complexity of your assets (e.g., business interests, out-of-state property)

- Your privacy concerns

- Your desire for control over asset distribution

Even with modest estates, trusts can be valuable for avoiding probate or providing for minor children. Consult an estate planning attorney to evaluate your specific situation.

What is the cost difference between a living trust vs. will in Arizona?

The cost of creating a living trusts by an estate planning attorney generally higher than drafting a will:

- Wills typically cost between $100 to $2,000, depending on complexity.

- Living trusts often range from $2,000 to $3,000 or more.

However, consider long-term costs:

- Wills may incur probate fees, which can be substantial.

- Trusts may have ongoing administration costs but avoid probate expenses.

The total cost effectiveness depends on your estate's size and complexity. An estate planning attorney can provide a more accurate estimate based on your specific needs.

How does a living trust protect assets differently from a will in Arizona?

A living trust offers several asset protection advantages over a will:

- Probate avoidance: Trust assets bypass probate, potentially saving time and money.

- Privacy: Unlike wills, trusts are not public records, keeping your estate details private.

- Continuous management: Trusts allow for seamless asset management if you become incapacitated.

- Flexibility: You can specify complex distribution plans and conditions in a trust.

However, both tools have their place in estate planning. Many people use both a will (often a "pour-over will") and a living trust for comprehensive coverage.